![]() ![]() In this example, the credit sweep arrangement ensures that Bella’s Bakery earns interest on its excess cash while maintaining sufficient funds in its checking account for daily operations. End of the next day: Because the checking account balance is below the agreed-upon minimum of $10,000, the bank automatically sweeps $2,000 back from the savings account to the checking account.Next day: Bella’s Bakery writes checks for various expenses totaling $12,000, reducing the checking account balance to $8,000.End of the day: Because the checking account balance exceeds the agreed-upon maximum of $20,000, the bank automatically sweeps $5,000 into a high-interest savings account. ![]()
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